Big News! The U.S. May Face Debt Default in August - Previously Staunchly Declaring Default Impossible, Basant Changes His Tune
According to Bloomberg, U.S. Treasury Secretary Scott Basant stated during a House committee hearing that the U.S. may face a default on national debt by late summer this year.
When asked when the U.S. would run out of money to pay off more than $36.9 trillion in national debt, Basant replied that he expected this situation to occur in mid to late summer.
The U.S. Treasury Secretary indicated that the expected default date is a "moving target" and may not be accurate. The Congressional Budget Office had previously stated that based on its forecasts, the U.S. would run out of money to repay its debts in mid-August.
Basant also noted that if President Donald Trump's tax plan fails to pass, the U.S. could face its most serious financial crisis since 2008.
He stated that if the national debt ceiling issue is not resolved, it would be the heaviest blow in the past 15 years.
Additionally, Basant made it clear that this administration hopes to reduce the deficit rate to below 4% before President Trump's term ends.
On June 2, Basant firmly stated that the U.S. economy could not default. Due to the national debt issue, the U.S. has lost its perfect credit rating.